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manage relief efforts during an election year. however, ruined communities like this are not convinced. more on the website. the latest on all the stories. the scenes in ukraine. plus take back your digital privacy. the technology to foil spies and hackers. i'm ali velshi. this is "real money." >> this is "real money." you are the most important part of our show 37 join our conversation at twitter using aj real money
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, @ali velshi or facebook slash real money. president obama proposed a $3.9 trillion federal budget for 2015. a budget is the manifestation of the government's priorities. it lays out how and where your tax dollars get raised and spent. president obama would like more of those dollars to go towards road construction, job training and preschool education next year. he wants to expand a tax break for lower income workers, and he wants to take away a tax break currently enjoyed by high-ear high-earning hedge fund types who earn most of their income from fees they charge investors. that's all i'm going to tell you at the moment about what is in this budget. instead, i want to you focus on what is wrong with the entire budget process in washington. formerly presidents present a budget to congress. president obama is a month late,
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but that's the least of the problems. then congress develops it's own version of the budget, and they vote on it by april 15th, sending it back to the president to be signed into law by then. this has not happened in years. keep in mind appropriating money to pay for things is the one thing that constitution actually requires congress to do. everything else is optional. there is a problem, unlike good wine, a federal budget does not get better with age. it gets worse because it uses old priorities to deal with new problems. nevertheless, we more or less extended the current budget now for almost five years. it's been nearly five years since the president signed a new budget bill into law. in that time the budget process has completely broken down.
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while president obama has not been great reaching his budget deadlines republicans in congress have made it clear they would vote down any budget he submits out considering it in committee. instead both parties in congress are coming up with their own budget and the result is three competing budget proposals that fail to be compromised into one that could pass both houses and be signed into law. for the fifth year running president obama is continuing with the same charade and like always america pays the price. while president obama's budget proposals are usually dead in the water our next guest said this budget is deader than most because there are two big things today that conspire against it. first is the two-year spending compromise that both parties in congress recently agreed to that basically takes any pressure off passing a budget. the second is the plain fact that we're in a midterm election year. stan served on the senate and house budget committees and
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considered one of the world ace leading experts on the budget process, and he joins me now. stan, good to see you, my friend. >> good to see. >> you wha you.>> is there anything that ie described as wrong? >> none, whatsoever. let me extend that. there is no chance that anything that congress will do will become a real budget either. the senate said it will not take up a budget this year. we'll get the president's budget that is probably not just dead on arrival but dead before typesetting, and for congress that will not consider anything, and even if they did, they would not be able to compromise the differences. we'll go in wit without a budget. >> i think you mentioned for the first 100 years we didn't do a budget. one wonders why we need this process? >> the process was put together
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in 1974, 40 years ago. it was designed to do one thing and one thing only. that is to make members of congress accountable. up to that point they did not vote on the total budget, deficit or surplus if there was one. this is to get them to vote for a budget resolution one place, one time and then run for election on your vote. that stopped. they didn't want to vote for this, and there is no penalty for not voting in it. and then congress doesn't feel they have any obligation to pass one of its own. the process needs to be completely redone. it's not shown that anyone has the testicular fortitude to do it. >> the debt limit is not the place to be having a discussion wher of how you spend your money. this is interesting to me that conservative members of congress
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are having their cake and eating it, but at the same time not able to prioritize spending the way they would actually like. >> well, let's remember that the conservative members like liberal members can't make decisions unilaterally. i'm sure if the conservative s had the power with the hype seem to be zero. they probably have trouble getting the support with the reading of the lord's prayer these days. but when it comes to taxes and budget and taxes debt, it's difficult because they don't want to do anything that will annoy their constituents before the election.
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>> what should americans think about what a budget should look like keeping up with new priorities. is there anything that both parties could agree on that a budget should have in it? i know there is a lot they can't agree on. >> interestingly enough i think we'll look back on a this year and say this is the beginning of the two sides getting together on a few things. we know the president with congress inclined to go with hays, sewers bridges, anything. anyonthat would help the econom. and it looks like people are moving forward. and it may an forcing event, the highway trust fund will run out of cash at some point. there is that. interestingly enough the tax reform plan that republican chairman of the ways and means
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committee put out last week included increases in taxes on high net worth individuals that democrats could go along with. the problem is could you get them in the room together and not have them beat each other's brains out. >> stan, always great to see you. stan has some of the best analysis that i've ever read. you can follow him on twitter on "the budget guy." ukraine is a country on the brink of default, and not every is suffering. some in the region are worth billions. we'll tell how they are, and how they're making all that loot. later, keeping secrets safe in the digit tall world. real money continues. keep it right here. >> al jazeera's investigative
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presents extrodanary documentaries. colin comes from a long line of ferrymen. >> you're a riverman from start to finish... >> now he leaves home to see what life is like on the waters of bangladesh. >> it's absolutely filthy... >> he learns how difficult working ther can be. >> how do you say..."get out the way"? >> shoro >> can this brittish man find common ground with his local host? >> "must really take it out of mr. loteef"... >> toughest place to be a ferryman on al jazeera america >> call this bounce back tuesday. yesterday i told you how the drama playing out in ukraine had rattled financial markets worldwide. investors ran to the safety of bonds and gold, oil prices jumped on fears of disruption in supply from russia which is the world biggest--second biggest exporter of oil. today tensions in crimea eased a bit after vladimir putin said there was no immediate need to enaggravated ukraine. investors did the option an of
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what they did on monday. they piled in stocks pushing down the gain of 21.4%. the nasdaq gave 1.75%. more gains more than erased yesterday's losses. many of us with retirement funds tied to those, so what they do affect us directly. gold dropped nearly 1%. oil fell to $133.33 a barrel. and notice the markets have put this behind them. the events in ukraine remain fluid. russian soldiers fired warning shots to push back ukrainian soldiers. no one was hurt
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hurt. secretary of state john kerry was in the capitol of kiev carrying on a promise of $1 billion in emergency aid and criticized russia's moves in ukraine. the crisis in ukraine is shining a harsh light on that country's economy and it's need to avoid default and it's highlighted russia's economic weakness and it's overreliance on energy exports. these two countries are home to plenty of rich people. plenty of billionaires, but that was not always the case. back in 2004 forbes reported that russia had 25 billion narrows and ukraine had none. ten years later forbes said russian has 111 billion narrows and ukraine has nine. the u.s. and china have the world's most billion narrows. all this information and more is in the forbes world billion narrows issue out this week. joining me to talk about
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those on the list, cary, good to see you. thank you for being with us. >> thank you for having me . >> ologarts suggest a small number of people who control a large part of the economy. >> and in russia and ukraine, you have billionaire ologarts. but not so in other places in the world. >> in america you could be a billionaire and not have an influence on anything but where you spend your money. when you look at some of these unstable economies where two decades ago people were living in troubled times in a centrally controlled economy, how do you end up up with these billion narrows? how did they get there? >> it's amazing. when you go through and read the biographies of these russian billionaires and some of these ukrainians as well, it's so much
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about being at the right place at the right time when being at a manager of a state-own the steel company or coal company, and they were there at the time that these companies got privatized, and they managed to get a bunch of equity as these things went private. they bought them pennies on the dollar. that's the classic olagart model. >> i was driving to work on the west side today in new york. and there was a big yacht right near where the intrepid ship is. i looked it up and turns out it's a yacht owned by a russian billionaire. in russia the lowest ranking billionaire on your list, well, by the way that's owned by roman abram avich. he's worth $9 billion. the lowest ranking russian
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billionaire is worth $1.8 billion. ukrainian billionaires are worth a lot less money. >> you're talking about a bigger economy in russia. as you pointed out in the beginning of your discussion, there were 25 billion narrows or 24 billionaires and none in ukraine. so the russians have had more time to create more money. did you show the eclipse, was that the name of the yacht that you saw when you were driving to work today. this is the largest yacht in the world. it's worth a lot of money. i was going to say it's a nice little thing to see on the way to work. >> in addition to yachts which i think is a strange way to spend your money. for $1.5 billion i would probably want to buy a small state but these guys are wiley investors.
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it's a reason why man property in new york is so high. >> there is a lot of trading in and out both in russia and in the u.s. one of the richest russians was the biggest holder of facebook stock. he sold off all of his facebook stock and now has some twitter. the owner of the brooks lynn nets made a bunch of money selling money in a gold company that he has. >> and cary good to talk to you. thank you for being with us. >> thanks for having me. >> forbes assistant managing wealth manager. leaving a digital trail for snoopers.
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we'll look at new ways to guard your privacy in a world where you don't know who to trust. you're watching "real money." we're not watching you, but keep it here.
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>> the winter that will never end is not over yet and has been a blow to industries like housing and auto. severe weather has hurt small businesses from maine to georgia and throughout the midwest.
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it's causing a growing number of them to seek loans while they wonder when the big t haw will finally come. >> reporter: fed up this retailer retailer resorted with the done with winter sale. the latest effort to offset losses after a string of snow storms and cold weather kept shoppers out of her clothing store in new york city. for small business owners like her the polar vortex is public enemy number one. >> how much money would you say you lost. >> i would say i lost $100,000 because of the winter. that's a lot for a small store. >> reporter: in chicago a roughly 50% drop in sales this winter was enough to force kendall shaw to take out a loan to keep paying the bills at his yogurt shops. the temperatures have fallen below zero more than 20 days
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making it one of the coldest winters in the city's industry. that means that kendall shaw has "h" to shut down for several days. costing him 800,000 a day in lost sales. he is he says for people who invest their own money in their small businesses, the impact is personal. >> we have daycare bills and car payments and rent and mortgages , it will effect not only your store but your foam life as we well. >> reporter: shaw is not alone. an increase in loan applications in the last two months with roughly 80% of demand tied to the weather. that amounts to 13,000 businesses. what's more, ceo rohitorra said
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that it's the biggest months for lending. >> we'll start seeing more issues with existing loans. >> reporter: but he said many of these businesses were poised for growth late last year and are experiencing bad weather in a good economy. >> the silver lining is that all small businesses are more optimistic because they also know that growing economy being stalled by bad weather is a temporary phenomena phenomenon. >> reporter: and they're counting on spring in a big way. >> with spring coming, the goats are going to come off. the layers are going to come off, and for us, this is going to go away. >> reporter: or at least that's the hope. mary snow, al jazeera. >> well lending broker biz to credit is advising small businesses to factor in the harsh neglect of weather going forward and put aside extra cash
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for a rainy wil /snowy/ polar vortex fund. has the weather stopped you from shopping? if so have you been buying what you need online? >> the cold weather has kept me from doing anything but sleeping or wishing for warmth. tell me what you think about tweeting me or leave a comment on facebook. whether shopping online or sending an e-mail by cell phone, chances are you're a little worried about how much of your information is shared with the cyber world. and if you're anything like me you weren't concerned about it before learning that the u.s. government were spying on its own citizens. what has changed in the digital world as a result? privacy demand has surged, and that investors and consumers alike are seeking out the next big thing in online security. michael is the author of wild west 2.0.
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how to protect your represent on reputation. i'm now concerned. i never was all that concerned when people were troubled by facebook. settings because you were choosing to put something out in the relative public. now i think the stuff that is private is public. >> there is a myth that digital privacy is about digital advertising. maybe you want to see a different kind of shoe and i want to see a different kind of shoe and when we surf the web you see ads for i couldn't shoe and i see ads for my shoe. but the data being collected is not only for nsa and government but other much more important transactional parts of our lives like whether you get a certain
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kind of credit offer or health insurance coverage. so the data that are being collected are digital profiles are effecting our jobs, our romance, our health, all these things much more important than digital advertising. i'm glad you can like him or leave him, snowed snowe snowden, in 1991 the mickage low virus is the first big virus that the media picked up on. it wasn't any different from any other virus but it caught the imagination, and i'm hoping this is the moment where internet privacy that we all build a billion dollar industry. >> they came out with the black phone, a safe phone and then you have to be on the same network that you're commuting with. not practical for most of us. what are the applications or things or inventions if this is
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the michelangelo moment so we can have safer conversations. >> silicon valley is gearing up and answering to give the public tools so they can live their lives snoop free. we are early in this. we protect privacy online. there are other companies. i would say snap chat for 450 million snaps a day which is fun pictures, but snap chats. the whole point of snap chat is you get to send something to someone, and then it disappears forever. it's not stored on the server. i think it needs to be taken seriously. phil zimmerman with one of the great privatcy protocols on the internet, we're gearing up to give you tools. >> will i be offered them by att & t and verizon. >> the start ups are going to
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try to sell you stuff, and eventually what's going to happen everybody in the world is going to get protected in the same way they're protected against anti-virus, frogs or transactions. the big companies because of regulation and because they're detecting themselves, the big companies will provide silent subsidies for the public to protect their data. first phase you have to look after yourself. and eventually i'm talking about five to ten years from now there will be a set of universal tools provided by large corporations and subsidized for them the same way that they protect our digital transactions in the infrastructure of the web. >> i look forward to that happening. ceo reputation, author of wild west 2.0 how to protect your reputation on the untame social frontier. my final thoughts. go to theodore
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deutscheman who sold gear to hobbyists like themselves. they named their first store radio shack. i grew up on radio shack. my story is mingled with theirs. as a kid i would go to the local radio shack two blocks from my house and get lost in it. that's where i saw my first computer. and that's where i went for any obscure electronic part that i needed or that i didn't need. it was always staffed by people who were more enthusiast tick enthuse enthusiastic will electronisastic about electrons. as for all the great obscure stuff that they used to sell, it's not there any more.
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radio shack commodityized. it will close some of its stores, they've got a big challenge ahead of them to keep relevant to the do it yourselfers like me and capture the imagination of the new generation electronic geek. i'm ali velshi. thanks for joining us. arch i am thomas dra deny in new york with a look at the top stories we are following at this hour. more tough talk talk coming out of washington regarding russia's occupation in ukraine after
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vladimir putin defended his actions. he said he denied russian troops were in cry crimea. president obama interrupting a scheduled event tuesday to address the crisis. the president said it is a serious situation that his administration is spending a lot of time on. president obama says russia should back down. the center for disease control says doctors and hospitals are over prescribing antibiotics. the cdc says 20,000 people die each year from prescription drug complication resists super bugs. >> texas attorney general greg abbott will be the republican nominee for governor and will run against democrat wendy davis. democrats believe they have a chance to turn the state from red to blue for the first time
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in three decades. tuesday marked the blowout at mardi gras. the city had been celebrating since mid february. revelers had to deal with colder temperatures and rain. "america tonight" is coming up next. ". >> on american tonight, face-off, ratcheting up the pressure as ukrainian and forces with russian ties stand firm. the diplomatic temperature rises, too. also tonight, not so neighborly. the bay area's boon, while it's driving real estate prices to heights you won't believe. and residents right out of the neighborhood. >> we are here today to say that the city, the tech industry needs to work with tenants to do more to stop displacement and growing out of it. when aut

Real Money With Ali Velshi
Al Jazeera America March 5, 2014 3:30am-4:01am EST

The impact of jobs, housing, healthcare, education and savings on the economy.

TOPIC FREQUENCY Ukraine 11, Russia 10, Us 7, New York 3, Jazeera America 3, U.s. 3, Stan 2, Al Jazeera 2, Ali Velshi 2, Kendall Shaw 2, Crimea 2, Washington 2, Obama 2, America 2, Wiley 1, Ologarts 1, Cary 1, Econom 1, Maine 1, Abram Avich 1
Network Al Jazeera America
Duration 00:31:00
Scanned in San Francisco, CA, USA
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Tuner Channel v107
Video Codec mpeg2video
Audio Cocec ac3
Pixel width 704
Pixel height 480

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on 3/5/2014